Aramco-backed fund Prosperity7 leads $95m investment in AI HealthTech Insilico

The Hong Kong-based company is setting up a new office in the UAE to develop AI software products and 'discover' new medicines to address unmet medical needs

Alex Zhavoronkov, founder and chief executive of Insilico Medicine, which now has a research and development unit in Dubai. Photo: Insilico

Insilico Medicine, a Hong Kong-based health technology company, has received $95 million in a funding round led by Saudi Aramco-backed Prosperity7, as it prepares to scale up operations in the Middle East with a new research and development base in the UAE.

The new capital will be used to support the company's pipeline of projects, including further development of its online platform, the establishment of a fully automated drug discovery laboratory and biological data factory, as well as the setting up of regional centres, Insilico said.

Insilico uses artificial intelligence systems to connect the analysis of biology, chemistry and clinical trials, and helps in discovering and developing drugs for diseases.

It aims to expand its AI capabilities from drug R&D to several other areas — including chemistry, green energy and agriculture — to support sustainable development.

Prosperity7’s investment is “significant” as it gives Insilico the opportunity to substantially expand its chemistry capabilities and increase its footprint in the Middle East, Alex Zhavoronkov, founder and chief executive of Insilico, told The National.

“In all prior rounds, Insilico was very selective when it comes to investors. We chose the most strategic pharmaceutical, healthcare, AI and financial investors that brought much more than money and experience,” he said.

“The fact that we got Prosperity7, Aramco's fund specialising in emerging technologies, is very significant.”

Demand for digital health care services is continuing to grow, with venture capital companies tapping into this by boosting their investments in start-ups, especially those that provide diagnostics, testing and other support services.

The global digital health market was valued at $175.6 billion in 2021 and is expected to grow at a compound annual rate of about 28 per cent through 2030, according to Grand View Research.

Insilico’s office in the UAE, which was opened recently, is projected to develop “rapidly” and will have 40 to 50 AI engineers within one year, said Alex Aliper, president of the office.

“At this site, Insilico will be developing state-of-art AI software products, discovering new medicines to address unmet medical needs, collaborating with local players in the AI and healthcare industry, and promoting the region,” he said.

The company will also share its expertise, establish internship programmes and collaborate with local universities, Mr Aliper said.

Aramco, the world's biggest oil company, officially launched the $1bn Prosperity7 fund in February, although it had already been in operation for a year at the time.

“We invest globally with a long-term view to support the development of next-generation technologies and innovations that are solving big problems,” Aysar Tayeb, executive managing director of Prosperity7, told The National.

“We see massive potential in expanding the application of AI discovery algorithms across other fields, such as energy and material science.”